How to use the BRRRR calculator to run deals without rehab cost

[Charles Mitchell]

Hi All!

I'm having some issues figuring out the best way to run my BRRRR deals. My goal is to run 5 a day which I've been doing but I can never paint a true picture with the numbers because I never know the rehab costs. I just received J scotts updated version on estimating rehab costs which I'm reading as fast as I can but still-- it seems hard to estimate costs with just pictures. I've been getting my practice deals from the MLS as well zillow/realtor.com. Any advice on best practices so I can start to run my deals without feeling like I'm missing something?

[Michael Ealy]

Originally posted by @Charles Mitchell:

Hi All!

I'm having some issues figuring out the best way to run my BRRRR deals. My goal is to run 5 a day which I've been doing but I can never paint a true picture with the numbers because I never know the rehab costs. I just received J scotts updated version on estimating rehab costs which I'm reading as fast as I can but still-- it seems hard to estimate costs with just pictures. I've been getting my practice deals from the MLS as well zillow/realtor.com. Any advice on best practices so I can start to run my deals without feeling like I'm missing something?

The cost of rehab will depend on your market and the price range.

If you're in the Midwest, this is how I figure out quick repair costs based on pictures (keep in mind this works for the median price range of $100K to $250K) and if you intend to FLIP (fix-n-sell)

- cosmetic improvements (paint, replace carpet with hardwood, new windows, landscaping) - $10,000

- remodel (new kitchen, new bathrooms, appliances) - $25,000 to $30,000 (this will typically include cosmetics)

- structurals (new driveway, new garage) + cosmetic + remodel - $40,000 to $50,000

Since you intend to fix-n-rent, multiply the above numbers by 65%.